NMDC may raise Rs.5,000 crore for Karnataka project

Kolkata, March 5 (IANS) Mining major National Mineral Development Corporation Limited (NMDC) may raise about Rs.5,000 crore through debt or equity to fund its planned two- million-tonne steel project in Karnataka, a top company official said here Friday.

‘We may go for further equity offering for our Karnataka project,’ joint general manager (finance) N. Srinivasan said.

He was here for a roadshow to promote the follow-on public offer (FPO) of shares of the company that is opening March 10 and closing March 12.

The Karnataka project is at a nascent stage. NMDC has just appointed a consultant to prepare a project report.

‘We expect to start work on the project after a year’s time and commission it within the next five years,’ Srinivasan said.

This apart, NMDC is working on setting up another steel project of 3 million tonnes capacity at Chhattisgarh, which would be commissioned before the Karnataka plant comes up.

NMDC’s current internal accrual stands at Rs.12,000 crore. The company earns about Rs.4,000 crore every year as profit, which goes into its reserves. All these would be pumped into the company’s Rs.26,000 crore capital expenditure that includes the integrated steel plant in Chhattisgarh, two pelletisation plants, a beneficiation plant and developing new mines, Srinivasan said.

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